The Board of Directors of OKP Holdings Limited ("the Company") wishes to provide an update on the Group's financial performance for the financial year ended 31 December 2005.
The Group expects revenue for FY2005 to be lower as compared to FY2004 due to a lower recognition of revenue from projects which were completed during the second half of FY2005.
The Group also expects a loss for the second half of FY2005. The loss is mainly attributable to actual cost exceeding internal projections in some of the Group's projects as the customers had, in the second half of FY2005, requested for further extension of the completion periods. As a result of the extension of the completion periods, additional costs were incurred. However, based on our current assessment, the Group is expected to remain profitable for the financial year ended 31 December 2005.
Further details of the Group's performance will be disclosed when it announces its unaudited financial results for the full year ended 31 December 2005 in February 2006.